Reliance Power received a $900 million loan from the US Export-Import Bank for establishing a coal-fired power plant in India.
The USEIB apparently reversed a prior decision and refused the funding request when its Board of Directors voted in majority to give a nod to the loan for the 3,960 megawatt Sasan power plant in the state of Madhya Pradesh.
Reportedly, the USEIB's earlier rejection to fund the project was due to criticism of the power plant by environmental committees, whose argument was that the project would emit carbon dioxide to the atmosphere and add to global warming.
Even though the funding has been decided, a nod from the U. S. Congress for the project is still awaited.
The bank's President Fred Hochberg is optimistic, and said the bank is glad at Reliance's efforts towards the renewable energy project. This project is the biggest financing supported by USEIB to any Indian corporation.
The aim of the loan is that Reliance Power will make use of the loan guarantee to give support to the sale and export by Wisconsin-based Bucyrus International for mining equipment.
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